The country's National Bureau of Statistics announced a fall in July for the first time in more than two years. Because China is in very high debt the risk of deflation needs paramount importance.
Also, The Chinese government is pressuring economists not to talk about the possible deflation while publicly denying the risk of it many times.
Chinese economy -the world's second-largest- has started to slow. Some policies are trying to be made but no solid step has been taken by any means.
Real estate prices are also collapsing. Houses in 100 cities across China have fallen by an average of 14 percent. Rents have fallen by 5 percent.
Chinese officials are calling on local governments to encourage consumers to spend more even though the central government is not paying enough to pay for more consumer spending.
As of today, nobody is sure what will happen to China some say they will successfully protect their economy as they did in the past. But sustaining a successful economy was way easier back then.
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